AN ECONOMIC STUDY FOR SUPPLY RESPONSE OF WHEAT CROP IN A.R.E .AT (1994 – 2009) | ||||
| Fayoum Journal of Agricultural Research and Development | ||||
| Article 18, Volume 25, Issue 2, July 2011, Page 29-39 PDF (462.88 K) | ||||
| Document Type: Research articles. | ||||
| DOI: 10.21608/fjard.2011.195647 | ||||
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| Abstract | ||||
| The study of supply response offers the methodology that enables identifying the effects of different factors either price or technological, in conjunction with legislative or regulatory ruling and others on wheat producers. Taking into consideration the production, consumption, demographic position, and the global changes that are related to this product, makes this subject more interesting for researchers to perform this study aiming to provide analysis that may be offered for political and economical decision makers. Studies concluded that the estimated area for agriculture between (1994 – 2009) is increasing by 2.4% and 1.5% if the increase in Erdab price and net Feddan of wheat returns of current values in the previous year is 10%, whereas the area for agriculture decreases by 1.8% and 1.1% if the increase in area planted of wheat and production costs of current values in the previous year is 10%. However, if all the parameters in the function increased by 10%, the estimated planted area in the year under study would increase by about 1.9% which is statistically confirmed at all known economical standards. This is achieved in light of using the real values for the monetary changes in estimating the sensitivity function in double logarithmic format. The study revealed that the estimated planted area in the current year, during the period under study is increasing by 3.65%. and 1.61% if the Erdab and net acre returns of wheat price escalated by the real values in the previous year by 10%. Whereas, it is decreased by 1.92% if the production costs are increased by the real values of the previous year 10%. If all parameters of the function were to be increased by 10%, the expected planted area in the current year within the period under study would increase by 3.34%, which is statistically confirmed at known economical standards. Therefore, it is important to take into consideration the consequences of increasing agricultural prices and production costs, and net Feddan returns when deciding production strategies related to wheat production in the upcoming years where the production strategies would be decided. In light of the above, the study recommends the following: 1- Continue increasing agricultural prices in accordance to the economical situations of the country, especially inflation. 2- Publishing crop prices by all means of advertising before planting crops by a reasonable time period. So that agricultures would be motivated to plant wheat aimed areas. 3- Concern not to increase the production costs. This could be achieved by saving all necessities of production in the appropriate time and achievable prices for the majority of agricultures. 4- Interest in the deployment of high productivity species and its agricultural extention methods that have a net positive Feddan return. 5- Speeding up issuing of the new cooperation law, where it contains providing and activating the basic roles for production and marketing and production cooperation. | ||||
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